FARMERS’ FERTILISER CO.

Sun (Auckland), Volume IV, Issue 1013, 2 July 1930, Page 11

FARMERS’ FERTILISER CO.

NET PROFIT OF £30.975 A SATISFACTORY YEAR A net profit of £30,975, the equivab lit of 11.2 per cent, of the paid-up capital of the company, is shown in the annual report and balance sheet of the New Zealand Farmers’ Fertiliser Company, Ltd., for the 14-months period ended May 31. On a basis of a. 12-months’ period, the net profit would work out at approximately 10.1 per cent, of the paid-up capital. The usual 8 per cent. dividend goes to shareholders, and the sum of £15.360 is carried forward, including the amount brought up from the previous “Shareholders will admit, in spite of the pessimistic tone which had prevailed for some time, that tho result must be considered very satisfactory,” states the report. The year had been fraught with many difficulties. Weather conditions had been against the liberal use of fertiliser, for top-dressing, while the prices obtaining for wool, butter and cheese must also have played an important part in restricting demand. Nevertheless, the business done during the period had been quite satisfactory.

Considerable alterations were made to the grinding capacity at both the -Auckland and New Plymouth works, thus substantially appreciating the value of the plant, on which adequate depreciation has been written off. Both works-were now well equipped, ami it was not expected that any necessity would arise lor exceptional outlay for some considerable time, certainly not during the next financial year

With the present appropriation of £ 6,500 for writing-off rights and concessions account, that item had been finally eliminated. Stocks were at a higher level than last year, but much less than would be required to meet tho heavy spring demand. With the increase in stocks in hand, there must bo a reflex in the banking account, but the position would. however, quickly change when these went into consumption. The Balance Sheet The balance sheet shows capital paid up to £261,995. the same as the previous year, and the reserve account is unchanged at £17.647. The liability to bankers has increased from £149,875 to £197,099. Assets total £ 057,680, an increase of £48,977. Stock is valued at £97.811, compared with £51,373 last year, while sundry debtors £38,301, are higher by £3,036. The annual meeting will be held on August 3. The retiring directors, Mr. A. A. Ross, Mr. S. Irwin Crookes, Mr. M. Harding, offer themselves for reelection. The loss to the directorate by the death of Mr. J. G. A. Ruddenkhiu was referred to with regret. He had been a member of the board for many years and his interest was deeprooted. As now constituted the board fully complied with the articles of association, and the directors had decided not to fill the vacancy. Following is a summary of the company's results and appropriations for the hist three years: 1927-28 1925-29 1929-30 Brought forward 13,236 15,142 15,338 Net profit .. .. 17,626 27,655 30,975* , . . , „ £30,862 42,797 46,313 1 Jividehd—rate p.c. 6 8 8 Amount 15,720 20JF60 24,453* Bights and conces. Car. forward ..£15,142 15,33 S 15,360 ♦Owing to the change in the date of the dosing of the company’s books for the financial year from March 31 to May 31, which became effective this year, these amounts are for a period of 14 months.